How the Russia-Ukraine conflict could affect young people’s finances

The Russian invasion of Ukraine has rattled global stock markets. It’s also sparked anxiety around personal finances, which have, for many around the world, already been strained by rising costs in the wake of the coronavirus pandemic.

Globally, young people were among the groups that have felt the economic effects of the pandemic most disproportionately. A survey by the Organisation for Economic Co-operation and Development, published in July, found that more than a third of people aged 18-29 across 25 countries reported experiencing financial difficulties since the start of the pandemic, more than any other age group.

The potentially far-reaching and destabilizing economic effects of an escalating Russia-Ukraine conflict could jeopardize the world’s tentative financial recovery just as young people are getting back on their feet.

Here’s what financial experts say are the main financial challenges young people could face in this crisis, and advice on how they can protect their money.

Oil prices have also been driven higher by the Russia-Ukraine crisis, as sanctions imposed on Russia by Western allies have prompted concerns of disruption to energy supplies. Brent crude futures hit $105 a barrel on Sunday evening, having topped $100 on Thursday for the first time since 2014. One analyst has even estimated that the oil price could hit $130 a barrel.

Energy commodities like oil had already been on the rise prior to the escalation of geopolitical tensions, feeding into higher fuel prices. A gallon of gasoline in the U.S. stood at $3.610 on Monday, according to AAA, up from the national average $2.717 a year ago.

Besides using public transport more to cut back on car fuel, which isn’t always possible, Sarah Coles, personal financial analyst at U.K. investment platform Hargreaves Lansdown, suggested that keeping up with easy car maintenance could reduce overall costs. This includes ensuring your car is serviced regularly and that tires are properly inflated. She said that even removing additional weight on the car, like roof bars and boxes, as well as taking heavy loads out of the trunk, could help.

“Driving styles make a big difference too: driving more slowly, in the highest appropriate gear and accelerating more gently,” she added.

Natural gas prices surged after the attack on Thursday, with futures up around 3.5% on Monday morning. The European Union is the largest importer of natural gas in the world, according to the bloc’s Directorate-General for Energy, with the largest share of its gas coming from Russia (41%).

Coles said that for those with money to do so, it’s worth investing in housing insulation, to minimize heating costs in the longer term. “Otherwise, there are still steps you can take — like turning the thermostat down by one degree, switching radiators off in rooms that aren’t used regularly, being more ruthless about how often you run the dishwasher and washing machine, or installing DIY…